An Act to amend and reenact § 60.2-602 of the Code of Virginia, relating to unemployment benefits; increase weekly benefit amounts.
Summary
SB759 amends Virginia Code § 60.2-602 to increase unemployment insurance weekly benefit amounts for eligible claimants. The bill updates the benefit table and establishes a new benefit schedule for claims effective on or after July 1, 2026, while also preserving separate schedules for claims filed in earlier periods, including a short transition period from January 1, 2026 through June 30, 2026. In practical terms, the measure raises the weekly unemployment compensation available to workers who qualify under Title 60.2, based on their prior wages in the base period.
The bill also includes a fiscal note stating that the higher benefits are expected to reduce the solvency of the Unemployment Trust Fund by an average of 7.43 percent over the next eight years. It further notes that the resulting increase in employers’ state unemployment tax liability per employee is indeterminate, reflecting uncertainty about how the trust fund impact will translate into future tax rates. The act was approved and enacted as Chapter 775.
Impact
This legislation directly amends the unemployment benefits statute in Title 60.2 of the Code of Virginia by revising the weekly benefit amount table and creating a new benefit level effective July 1, 2026. It affects unemployed workers eligible for benefits, as well as employers who finance the unemployment insurance system through payroll taxes. The bill’s fiscal provisions indicate a likely downward effect on the Unemployment Trust Fund’s solvency and potential upward pressure on employer tax liability, though the exact tax impact cannot be determined in advance.
Sentiment
The bill appears to have received generally favorable support, especially in the Senate, where it passed committee and the floor unanimously or near-unanimously after a substitute was adopted in Finance and Appropriations. In the House, it also advanced through committee and Appropriations, but with more opposition than in the Senate, and the final House passage was notably narrower than the Senate vote. Overall, the voting history suggests broad support for increasing unemployment benefits, tempered by some concern about cost and fund solvency.
Contention
The main point of contention is the tradeoff between higher unemployment benefits for workers and the fiscal effect on the Unemployment Trust Fund and employer tax rates. Supporters appear to favor stronger wage replacement for unemployed claimants, while opponents or skeptics likely focused on the bill’s projected reduction in trust fund solvency and the possibility of higher payroll tax burdens on employers. The more divided House committee and floor votes suggest that cost concerns were more pronounced there than in the Senate.